BSMG Blog: Protecting the Future of Families and Businesses

As you've no doubt seen, all over every major news network and social media site, Friday was Inauguration Day. It was a busy day in Washington and many of us are wondering what changes the industry is facing with the donning of a new president. Although it is too soon to tell, there are many thoughts and opinions surrounding Trump's Presidency and how it will affect financial advisors and insurance brokers alike. We've compiled a list of industry articles below, and as always, we'll be sure to keep you updated as we catch wind of any changes.

As the excitement over last week's election results has slowly started to fade away you might find yourself wondering how a Trump presidency will affect financial advisors?

We've put together some important considerations that have arisen since Trump announced his tax reform proposals. Keep in mind that each of these proposed changes came out during his campaign and only time will tell whether or not they will come to fruition. Clearly, the U.S. House and U.S. Senate will merge their version of tax reform into the Trump proposals.

Take a look below and be sure to comment on any tax reform proposals that you think may become a reality in the next 4 years.

Genworth has announced that it will suspend sales of all traditional life, fixed annuity and indexed annuity products, effective March 7th, 2016. They will now focus solely on LTC solutions.

From their bulletin released today:

“Genworth has decided to direct its efforts exclusively on the market opportunity that provides the most potential for profitable growth and takes the greatest advantage of our expertise, long term care insurance experience, and competitive strength: providing solutions that address the financial challenges of aging.”

Brokers’ Service Marketing Group Publishes Results of the 2016 Life Insurance & Annuity Brokerage Survey

- Study reveals that all Brokerage Agencies are NOT created equal.

Providence, RI – February 3, 2016 - In November of 2015, Brokers’ Service Marketing Group sponsored a non-branded, blind survey of over 75,000 financial sales professionals licensed to sell life insurance and annuities in the United States. These financial professionals were invited by email and online promotions to participate in the survey.

The Federal Reserve’s FOMC decided to raise rates on December 16th 2015 for the first time in almost a decade.

"With the economy performing well and expected to continue to do so, the committee judges that a modest increase in the federal funds rate is appropriate," Fed Chair Janet Yellen said in a press conference after the rate decision was announced. "The economic recovery has clearly come a long way."

A recent research study by LinkedIn revealed that Affluent Millennials have a very bright financial future. This "client persona" is not to be ignored by today’s financial services provider. These potential prospects are everywhere; in fact, there are 15.5 million of these Affluent Millennials in the United States alone and are vital to the United States economy, spending $2.0 trillion annually across a range of products and services.1

WHY ARE THEY RELEVANT?

This generation as a whole, is poised to build wealth on their own, they will also be on the receiving end of a massive generational transfer of at least $59 trillion in personal wealth over the next several years.1

The Federal Reserve’s FOMC decided to not raise rates on Septhember 17th 2015:

In its statement, the FOMC confirmed it "Is monitoring developments abroad.”

"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term"

What Will the Fed Do Tomorrow?

It's been 9 years since the Fed last raised rates. Yet, no matter what Janet Yellin and the FOMC decide to do with short-term rates tomorrow, you can rest assured that market volatility will continue. Why? Because the market will likely be "surprised either way" says Kate Warne, an investment strategist at Edward Jones.

Diversity in the workforce has successfully fueled innovation across all industries. It brings new thinking to the table that can lead to innovative solutions for your business and for your customers. As members of the insurance industry, we have to get creative and find ways to not only attract a diverse workforce but to make sure all levels of that workforce are involved in innovation and change.

Regardless of the proven success and innovation that diversity in the workplace has driven, a shocking 52% of women in the insurance industry say they still feel that gender equality is a significant concern.